unit11 materialsmanagement rules

7/27/2019 Unit11 MaterialsManagement Rules

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MATERIALS MANAGEMENT (MM)

- Rules -

Unit 11


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July 2007 SAP AG and The Rushmore Group, LLC 2007 2

Business Process Integration

Rules

MM


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Rules

Defines the parameters for Master Data andTransactions

Determines functionality for Master Data and

Transactions

Relatively fixed

Changes as policy changes


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ERP

FIFinancial

Accounting

COControlling

PSProject

SystemWFWorkflow

ISIndustry

Solutions

MMMaterials

Mgmt.

HRHuman

Resources

SDSales and

Distribution

PPProduction

Planning

QMQuality

Mgmt.PMPlant Maintenance

SMServiceMgmt.

Client / Server

Integrated Business

Solution

ECEnterpriseControlling

AMFixed Assets

Mgmt.

Materials Management (MM)


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Unit 11 Overview

Reservations

Tolerances

Purchasing

Goods Receipt

Invoice Receipt

Automatic Account Assignment

Invoice Verification


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Reservations

A request to have a material ready for issue at afuture date for a production order, sales order,etc.

The purpose of a reservation is to ensure that amaterial is available when required and notassigned to another use


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Purchasing Tolerances

A tolerance limit is set for allowed variancebefore a warning/error message is displayed

Price variance

Compares the price in the purchase order with thevaluation price stored in the material master

Maximum cash discount

This tolerance limit is set to assure that cash discounts

do not exceed allowable discounts



Goods Receipts Tolerances

Purchase order price quantity there are twotolerance levels maintained per item

The maximum percentage variance before a goods

receipt postings is not allowed A percent variance that generates a warning message

but allows posting

Moving average price variance

the maximumallowable moving average price change allowed



Invoice Receipts Tolerances

Many tolerance limits that can be configuredfor invoice receipts: price, quantity, andblanket purchase orders These tolerances

include: Amount for item with or without order reference

Form small differences automatically

Percentage Over/Under Quantity Variance

Exceed amount: quantity variance

Blanket purchase order value and time limit

Price variance




Automatic account assignment is created toavoid manual postings of financial transactionswhich follow goods movements to reflect the

values of transferred materials Automatic account assignment is used across all

modules to keep track of the values of materialsthat are being consumed (e.g., production), or

transferred into other valuation areas of thecompany




(continued)

Automatic account assignment is a set of rulesand master data which enable the financialtracking of logistics movement




Components

Components of Automatic AccountAssignment

Chart of Accounts

Valuation Grouping Code

Transaction Key

Modifier for Transaction Key

Valuation Class





Valuation grouping code - groups valuationareas together

Example: valuation area is plant, five plants exist in

the company, all five plants use the same accounts. Multiple valuation groups are possible


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Plant

P004Plant

P001

Grouping Code

G001

Plant P003

Plant P002

Grouping Code

G002

Plant P005


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Transaction Keys

Transaction Keys

The transaction keys are used to determine accountsor posting keys for line items which are created

automatically by the system. The transaction keys are defined in the system.


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Transaction Keys

Transaction Keys Inventory Postings

BSX

Offsetting Entry for Inventory Postings GBB

Materials Management Small Differences

DIF

Cost (price) differences (PPV) PRD

Goods receipt / inv. receipt clearing acct

WRX


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Modifier

Modifier

modifies the transaction key forvarious movement types Blank Goods receipt from purchase order with

account assignment VBR Goods issue to consumption

VAX Goods issue to sales post to cost of goodssold

AUF

Goods receipt from a production order

postto production settlement

Etc. Many others


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Material Types & Valuation

Classes

Account category reference:

Builds the link between material types and thevaluation class(es)

0009

Reference for Finished Products

0005 Reference for Trading Goods

0002 Reference for Operating Supplies

0001 Reference for Raw Materials

Account Category Reference

FERT

HAWA

HIBE

ROH

Material Type

7920

3100

3030/3031

3000/3001/3002/3003

Valuation Class


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Material Types & Valuation

Classes

Material Type

ROH (Raw Material)

Acct Cat. Ref

0001 Raw Materials

Valuation Class

3000

(Steel)

Valuation Class

3001

(Paper)

Valuation Class3003

(Plastics)


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Account

790000

Automatic Account AssignmentPlantP001

Valuation Class

3100 (Trading Good)

Grouping Code

G000

Goods Movement

GBB (Goods Issue)

Account Modifier

VBR (Iss. To Cons.)

PlantP002

Valuation Class

3100 (Trading Good)

Grouping Code

G000

Goods Movement

GBB (Goods Issue)

Account Modifier

VBR (Iss. To Cons.)

PlantP003

Valuation Class

3100 (Trading Good)

Grouping Code

G001

Goods Movement

GBB (Goods Issue)

Account Modifier

VBR (Iss. To Cons.)

Account

790001


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PlantMaterial TypePoints To:

G/L Account

Account

Modifier

Transaction

Event Key

Valuation

Grouping Code

Valuation

Class

Represented

By:

Chart of

Accounts

Additional

Information

Goods

MovementValuation AreaMaterial

Where Valueis recorded:Why 2:Why 1:Where Valued:What:

Plant P001HAWAPoints To:

790000VBRGBBG0003100

Represented

By:

Chart of

Accounts -C000

Issued toConsumptionGood IssuePlant P001BPEN000

Where Value

is recorded:Why 2:Why 1:Where Valued:What:


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Goods Receipt

Materials can be received as stock items or non-stock items

Receipt is possible from external or internal

sources

Individually / collectively

Tolerance limits can be set for goods receipt

Special movement type for initial inventory load

d i ( i d)


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Goods Receipt (continued)

Stock items can be received into restricted orunrestricted stock

Non-stock items are received into orders,

projects, cost centers

Materials that are usually received intoinventory can also be received into orders,

projects, cost centers

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Invoice Verification

Set parameters for invoice verification

Quantity, price, receiving date, P/O quantity

Updates material master if moving average price

Automatic account assignment for price differences -if allowed

Verify actual versus target

h


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3-Way Match

Purchase order

- Target quantity -- Target price -

Goods receipt

- Actual quantity -

Invoice receipt

- Actual price -

A t P bl S ttl t


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Accounts Payable Settlement

Purchase

Order

Goods

Receipt

Invoice

Receipt

Debit Credit

Payment

Program

Verification

U it 11 G 1 E i


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Unit 11, Group 1 Exercises

89. Set Default Values for Inventory ManagementReservations

90. Maintain Purchasing Tolerance Limits

91. Maintain Goods Receipt Tolerances

92. Maintain Invoice Receipt Tolerances93. Set (Review) Valuation Control

94. Assign Valuation Area Grouping

95. Define (Review) Valuation Classes

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J l SAP AG d Th R h G LLC 8

Unit 11, Group 2 Exercises

96. Configure Automatic Postings for Goods Movement

97. Configure Automatic Postings for Taxes

98. Set Parameters for Invoice Verification

99. Create Default Values for Invoice Verification

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